Central and West Asia
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline|
|01A - Short-term lending info_outline|
|01B - Support policies for short-term lending info_outline||
No amount/estimate: Provided a few foreign exchange swap operations to assure sufficient liquidity in AMD and in foreign currency.
|01C - Forex operations info_outline||
(i) No amount/estimate: Provided a few foreign exchange swap operations to assure sufficient liquidity in AMD and in foreign currency. The CBA has undertaken some foreign exchange sales to limit excessive dram volatility since; (ii) The exchange rate has been allowed to adjust flexibly and has depreciated around 3% against the USD since the end of February. No balance of payment or capital control measures have been adopted.
|02 - Credit creation info_outline||AMD25,000,000,000||USD51,123,841|
|02A - Financial sector lending/funding info_outline||AMD25,000,000,000||USD51,123,841||
Allocate a total of AMD25 billion (over USD50 million) to co-finance loans for companies that borrow money from Armenian banks in the national currency to pay salaries, taxes, bills and purchase raw materials. This amount includes subsidy for the interests of these of loans.
|02B - Support policies for long-term lending info_outline|
|02B1 - Interest rate adjustments||
(i) No amount/estimate: 28 April 2020, The Central Bank of Armenia (CBA) reduced the policy rate by 25 bps to 5%. On 17 June 2020, this rate was further reduced by 50 bps to 4.5%. On 15 September 2020, this rate was reduced to 4.25%, where it has since remained unchanged.
|02B2 - Other policies to support long-term lending|
|02C - Loan guarantees|
|03 - Direct long-term lending info_outline|
|03A - Long-term lending info_outline||
No amount/estimate: 27 March 2020, Preferential loans to SMEs in sectors including manufacturing, transportation and storage economy, tourism, other service sectors, and healthcare. The loans will be interest-free for the first 2 years and 12% for the third year.
|03B - Forbearance|
|04 - Equity support info_outline|
|05 - Health and income support||AMD30,000,000,000||USD61,348,610|
|05A - Health support|
|05B - Income support||AMD30,000,000,000||USD61,348,610|
|05B1 - Tax and contribution deferrals and policy changes|
|05B2 - Tax and contribution rates reduction|
|05B3 - Subsidies to individuals and households||AMD30,000,000,000||USD61,348,610||
AMD30 billion (over USD60 million) for urgent social assistance for the impoverished. See Measure 9: No breakdown.
|05B4 - Subsidies to businesses||
(i) No amount/estimate: Subsidize the interest rates of co-financed loans for companies that borrow money from Armenian banks in the national currency to pay salaries, taxes, bills and purchase raw materials; (ii) No amount/estimate: 26 March 2020, Stimulus package of AMD500 million each to struggling businesses; (iii) No amount/estimate: A one-time grant in the amount of the salary of every fifth employee is provided for companies with 2-50 employees. Similar measures were approved for companies with up to 100 employees, and both measures were extended until 31 May 2020.
|05B5 - Indirect income support|
|05B6 - No breakdown (income support)|
|05C - No breakdown (health and income support)|
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending and reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||AMD165,338,710,041||USD338,110,000|
|08A - Swaps info_outline|
|08B - International loans/grants||AMD165,338,710,041||USD338,110,000|
|08B1 - Asian Development Bank||AMD21,883,136,477||USD44,750,000||
(i) 22 March 2020, Country Support under TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases - USD1.8 million; (ii) Nonsovereign Operations: Guarantee under the Trade Finance Program (Additional Financing) - USD14.65 million (with another USD29.47 million co-financed); (iii) Nonsovereign Operations: Loan under the Trade Finance Program (Additional Financing) - USD5.23 million (with another USD5.44 million co-financed); (iv) 28 May 2020, COVID-19 Working Capital Support Project - USD20 million (with another USD25 million co-financed); (v) 1 July 2020, Promoting Digital Finance Solutions for Inclusive Finance among Partner Financial Institutions - USD0.05 million; (vii) 13 July 2020, Addressing Health Threats in the Central, West, and East Asia Region - USD0.13 million; (viii) 24 July 2020, Due Diligence and Capacity Development of Trade Finance Program Banks - USD0.11 million; (ix) 3 August 2020, COVID-19 Emergency Response - USD2 million; (x) 6 August 2020, Distance Education for Resilience Project in Armenia - USD0.75 million; (xi) 26 November 2020, Addressing Health Threats in the Central, West, and East Asia Region (Additional Financing) - USD0.03 million.
|08B2 - Other||AMD143,455,573,564||USD293,360,000||
(i) April 3, The World Bank allocated USD3 million to address the country’s urgent needs for equipment and supplies needed for the intensive care of people with a confirmed COVID-19 diagnosis; (ii) May 18, USD280 million in total aid immediately available after an augmentation of its Stand-By Arrangement with the IMF; (iii) As of May 26, USD2.7 million to prepare laboratory systems, activate case-finding and event-based surveillance, support technical experts for response and preparedness, bolster risk-communications, and more; (iv) August 27, USD260,000 in COVID-19 relief from Canada; (v) 4 February 2021, USD7.4 million in Additional Financing for the Disease Prevention and Control Project. The project will benefit Armenia’s health system response to COVID-19 and potential future pandemics, including hospitals’ capacity for case management and intensive care; (vi) No amount/estimate: 9 March 2021, Armenia received medical equipment from South Korea. The devices will be distributed to medical centers treating COVID-19. [update]
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown||AMD245,000,000,000||USD501,013,646||
(i) Government assistance package with a headline amount of at least AMD300 billion to mitigate the socio-economic issues related to the pandemic, although this includes a variety of direct spending, state-sponsored loans and increased investment. The key measures include (a) direct labor subsidies to micro enterprises and SMEs that retain their employees and maintain their wage; (b) strategic support to innovative companies, although the details of this last element are not yet final; (ii) 27 March 2020, For Armenia-registered economic entities or individual entrepreneurs with competitive business ideas, 75% of financial resources are provided as interest-free loans with a maturity of eight years and the other 25% are provided as grants.
|11 - Other Economic Measures||
14 May 2020, Temporary restrictions on the export of medical masks, gloves and goggles, biohazard suits, medical robes, antiviral medicines, gauze and other medical products.
|12 - Non-Economic Measures|
|12A - Measures affecting travel and transport (local and international)||
(i) 16 March 2020, The government declared a national state of emergency, first until 14 April, but subsequently extended to 14 May, 13 June, 13 July, and finally being lifted on 11 September. During the state of emergency, travel bans were imposed on citizens from high-risk countries. Public transportation and other domestic travel was reopened earlier, on 18 May; (ii) 13 January 2021, Entry restrictions for foreigners in Armenia are withdrawn; all foreigners now can enter both by air and via ground checkpoints, as long as they have a negative PCR test result made within last 72 hours.
|12B - Measures affecting business and workplace||
16 March 2020, As part of the state of emergency, the government implemented closures of public spaces. Retail businesses and restaurants were allowed to reopen earlier, on 18 May.
|12C - Others||
(i) 16 March 2020, The government declared a national state of emergency, first until 14 April, but subsequently extended to 14 May, 13 June, 13 July, and finally being lifted on 11 September. As part of the state of emergency, the government implemented lockdowns as well as social distancing protocols and other health precautions; (ii) Quarantine is still in effect until 11 January 2021, which bans large gatherings and requires 14-day self-isolation and testing for people entering the country; (iii) 18 February 2021, The government has approved 3 vaccines (AstraZeneca, Pfizer, and Sputnik V). Rollout is expected to start in March 2021 on a voluntary basis and possibly free of charge.